Pakistan’s securities regulator issues white list of digital lending apps to prevent online fraud

Google apps are seen on Honor 20 Pro smartphone at an event to launch the Honor 20 Series smartphones at Battersea Evolution in London on May 21, 2019. (AFP/FILE)
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Updated 12 April 2023
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Pakistan’s securities regulator issues white list of digital lending apps to prevent online fraud

  • The SECP shared a list of 75 illegal apps operating in Pakistan with Google, asking the Internet giant to take them down from Play Store
  • Only licensed apps offering personal loans and investments will be allowed to operate in the country and remain available on Play Store

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday issued a white list of digital lending apps to serve as a reference point for Google that will list them on Play Store from May 31 to prevent the possibility of online fraud, said an official statement.

The SECP has published the name of SmartQarza as the approved app, and it is currently evaluating three other apps for final endorsement.

According to an official of the regulatory body, the issue of online fraud through unauthorized apps offering personal loan and investment was taken up by the Pakistani authorities with Google who urged the global Internet company not to allow such apps to function in Pakistan.

“We were negotiating with Google for the last couple of months, and now they have agreed that those apps which would not be licensed by the SECP will not be allowed,” said Muhammad Sajid Gondal, a spokesperson for the regulatory body, on Wednesday. “Google will review the app by May 31 this year, and all those apps that are not licensed will be taken down.”

The SECP spokesperson said that the regulatory body had identified and shared a list of 75 illegal apps on the Play Store.

“Until now, they have taken down about 40 out of those 75 apps,” Gondal said. “They are also reviewing the remaining apps. The most important component of the agreement with Google is that those apps operating outside of Pakistan will not be allowed to get access in the country.”

He expressed optimism that the move would help reduce or totally eliminate financial fraud through such illegal apps that could access users’ personal information.

“Only licensed apps will be available, and their forensic audit will be carried out to check if they have access to users’ personal data,” Gondal added.

The SECP has made it mandatory for apps to obtain cybersecurity certification from any firm approved by the Pakistan Telecommunications Authority (PTA), proving that they do not access customers’ personal data.

The SECP white list contains the names of approved apps owned by licensed Non-Banking Financial Companies (NBFCs), as well as the apps of licensed NBFCs that were operating as of December 27, 2022, and have applied for approval.

Pakistani law also mandates these apps to comply with digital lending standards, take adequate cybersecurity measures and controls to ensure confidentiality, and restrict them from accessing the user’s phone book or photo gallery.

Pakistan has become the sixth country, after India, Indonesia, Philippines, Nigeria, and Kenya, to introduce additional conditions for digital loan offering apps.
 


Pakistani PM to attend Board of Peace summit as part of Islamic bloc effort — FO

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Pakistani PM to attend Board of Peace summit as part of Islamic bloc effort — FO

  • Board will hold its first meeting on Feb. 19 in Washington to discuss Gaza’s reconstruction
  • Foreign office spokesman says no dates finalized for visit to Pakistan by Saudi Crown Prince 

ISLAMABAD: Pakistan confirmed on Thursday that Prime Minister Shehbaz Sharif will attend the first meeting of President Donald Trump’s newly formed “Board of Peace” in Washington on Feb. 19, positioning Islamabad as part of a joint Islamic diplomatic initiative focused on Gaza.

A UN Security Council resolution, adopted in mid-November, authorized the board and countries working with it to establish an international stabilization force in Gaza, where a fragile ceasefire began in October under a Trump plan on which Israel and Palestinian militant group Hamas signed off.

Under Trump’s Gaza plan, the board was meant to supervise Gaza’s temporary governance. Trump thereafter said the board, with him as chair, would be expanded to tackle global conflicts. The board will hold its first meeting on Feb. 19 in Washington to discuss Gaza’s reconstruction.

Speaking at a weekly press briefing in Islamabad, Foreign Office spokesperson Tahir Andrabi confirmed Sharif’s participation.

“Yes, I can confirm that the prime minister will attend the Board of Peace meeting... He will be accompanied by the deputy prime minister,” Andrabi said, describing Pakistan’s participation as part of a broader collective engagement by Muslim-majority states.

“We have joined the Board of Peace in good faith… We are in it, not in isolation, not as one voice, but as a collective voice of eight Islamic Arab countries,” he said.

“Our collective voice is resonating in the Board of Peace, and we will continue to strive for the right and progress and prosperity of the people of Palestine. And also aimed at the long-term solution of the Palestine issue in order to create a state of Palestine in accordance with the pre-1967 border with Al-Quds Al-Sharif as its capital.”

Pakistan does not recognize Israel and has consistently supported a two-state solution based on pre-1967 borders, with East Jerusalem as the capital of a future Palestinian state.

Responding to reports about a possible visit to Pakistan by Saudi Crown Prince Mohammed bin Salman, Andrabi said no dates had been finalized.

“There was a reference to the visit in one of the joint statements [issued after two visits of Sharif to Saudi Arabia last year] that this visit will take place this year. But I am not aware of its timing as yet,” the FO spokesman said.

Andrabi also addressed Pakistan’s financial engagement with the United Arab Emirates, confirming that Abu Dhabi had rolled over $2 billion in deposits with Pakistan’s central bank.

“The tenure of the rollover is prerogative of the depositor. But what I can assure you is that through the positive role of the Deputy Prime Minister and Foreign Minister [Ishaq Dar], we can say that the rollover is assured,” he said.

Last month, Pakistan’s central bank confirmed the extension of the $2 billion deposit, which has helped support the country’s foreign exchange reserves as Islamabad implements reforms under an ongoing International Monetary Fund bailout program.

Andrabi added that Pakistan currently faces “no external finance gap.”